Enabling Salzburg AG's participation in balancing markets

Salzburg AG hydropower plant
February 25, 2024

The energy supply industry is experiencing a significant transformation as small power plants and private individuals increasingly feed electricity from photovoltaics, wind, and biomass into the power grids. This evolution presents new challenges for both the networks and energy suppliers, who must respond to rapidly changing market conditions with innovative products to stay competitive.

In response to these challenges, Salzburg AG, a major energy provider in Austria, Salzburg AG initiated a collaboration with CyberGrid in 2015. By leveraging CyberGrid's cutting-edge Virtual Power Plant (VPP), their assets can seamlessly participate in the balancing markets, optimizing resource utilization and monetization.

Central to this partnership are technological advancements such as the "Demand Response Management System" and "Virtual Power Plant", which are pivotal in Salzburg AG's pursuit of energy autonomy for the state of Salzburg. The decision by Salzburg AG to collaborate with CyberGrid was driven by the superior technical performance of CyberNoc software, the experience and adaptability of their team and the opportunity for joint development of future products.

The initial phase of the project involves CyberNoc aggregating renewable energy from numerous small power plants into a virtual power plant. This aggregated energy is managed like a conventional power plant, enabling it to be traded in energy markets. This phase demonstrates the synergy between Salzburg AG and CyberGrid in creating a scalable and efficient solution for renewable energy integration.

In the second phase, the project expands to include industrial loads and generators alongside the already controlled small power plants. The system is described by its inventors as akin to an "Internet for renewable energy", underscoring its innovative approach to managing and distributing renewable energy resources.  

Salzburg AG initiated the collaboration with CyberGrid to enable access to the balancing markets for small assets that don't meet the 1 MW threshold. CyberGrid's virtual power plant aggregates these small assets, allowing them to participate in the balancing markets as a single large entity. We manage all kinds of flexible assets, including small hydropower plants, PV, EV, and other renewable energy sources.  – Thomas Anfang, Power Trading at Salzburg AG.

Q: What significant milestones marked the initial phase of the collaboration?

A: The key milestones included identifying potential providers and assets to be included into the VPP, ensuring the functional control of these assets by the system, and establishing a fair remuneration framework for providers considering the varied nature of assets involved and operational costs.

Q: What strategies were employed to achieve these milestones?

A: Achieving these milestones required robust networking between our trading department and small hydropower plant operators, leveraging the Telecontrol department's expertise, and ensuring equal treatment for all providers.  

Q: How do you foresee the new version of CyberNoc benefiting Salzburg AG?

A: The new version of CyberNoc allows us to operate faster and to be even more accurate. Manual actions are reduced, and flexibility can be summarized into better groups with similar costs and functions, inter alia. The new version is much faster and user-friendly. Overviews from the assets and evaluations can be done much quicker. The program runs fully automated and, if there are any problems, an error report is sent instantly to the users.

Q: What kinds of assets are under your control and operation?

A: We manage all kinds of flexible assets, including small hydropower plants, PV, EV, and other renewable energy sources. Currently, our portfolio includes more than ten assets, and we have more than 5MW of flexibility.

Q: How do you envision this long-lasting partnership benefiting your business?

A: The possibility for our customers to participate in the balancing markets is outstanding and generates benefits for both the customers and Salzburg AG.

About Salzburg AG

In an era where digital transformation and sustainability are paramount, Salzburg AG, an innovative, digital and sustainable Green Tech Company, is spearheading innovations that resonate with these global imperatives. Renowned for its comprehensive portfolio, which spans clean energy, telecommunication, internet and cable TV services, Salzburg AG is committed to enhancing the quality of life for Salzburg residents, driving the region towards a greener future. Additionally, Salzburg AG is a full provider in the sectors of e-mobility and photovoltaic. In the business year 2023, Salzburg AG recorded about 2500 employees and 2,7 billion sales volume.

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